| Wed 3 Feb 2010, 7:49 | | RDI - Rockwell Diamonds - Rockwell updates financings and rights offering |
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RDI
RDI
RDI - Rockwell Diamonds - Rockwell updates financings and rights offering
ROCKWELL DIAMONDS INCORPORATED
(A company incorporated in accordance with the laws of
British Columbia, Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI ISIN: CA77434W1032
Share code on the TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL UPDATES FINANCINGS AND RIGHTS OFFERING
February 2, 2010 - Vancouver, BC -- Rockwell Diamonds Inc. ("Rockwell" or
the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has
completed the private placement portion of the recapitalization financings
originally announced on December 2, 2009 and has now established the number
of rights to be offered in the rights offering, which is to be finalized this
week and launched later this month with a March completion date.
In its December 2, 2009 news release, the Company announced its intentions
to raise approximately $12.5 million (all currency figures are in Canadian
dollars) in a combination of private financings and a shareholder rights
offering. At that time, the Company estimated that approximately 67 million
rights shares would be offered based on an issued share capital of 238 million
shares as well as an additional, approximately 30 million private placement
shares which were expected to be issued to raise approximately $2 million
before commencement of the rights offering.
In the Company`s January 6, 2010 news release, the Company announced
completion of $7.4 million of the private financings and also projected an
overall increase of $2.2 million to a targeted total raise of about $14.7
million. As a consequence of the sequencing of the placements and the
international aspects of the rights offering, the latter was delayed
approximately 8 weeks from the original timetable. The Company has now closed
the private placement portion of the financing and has issued approximately
132.8 million shares at $0.065, thereby raising $8.6 million to date.
Accordingly, the Company currently has 370.8 million shares outstanding and the
rights offering will offer approximately 92.7 million shares, representing an
increase of 25 million shares or $1.25 million over the December 2, 2009
estimate. Forty-seven (47) million shares of the rights offering are the
subject of a stand-by completion guarantee and, in the event that the rights
offering is fully subscribed by existing shareholders, approximately $4.6
million will have been raised plus the stand-by guarantor will purchase a
further $3.4 million of shares at $0.065, subject to TSX acceptance, making
for a final recapitalization of between $13.2 million and $16.6 million.
President and CEO John Bristow commented, "We are most encouraged that
investor interest and support for Rockwell has proved far greater than we
originally projected which we attribute to strengthening of rough diamond
prices, improving financial market conditions, and strong support and
enthusiasm for our prospects and plans. We have achieved a good mix of
support from existing and new strategic investors who will contribute to the
success of our going-forward growth and expansion strategy."
For further details on Rockwell, please visit the Company`s website
at www.rockwelldiamonds.com or contact Investor Services at (604)
684-6365 or within North America at 1-800-667-2114.
John Bristow
President and CEO
No regulatory authority has approved or disapproved the information contained in
this news release.
Forward Looking Statements
This release includes certain statements that may be deemed
"forward-looking statements" or "forward-looking information" (together,
referred to as "forward-looking statements"). Other than statements of
historical fact, all statements in this release that relate to the financing
and rights offering are forward-looking statements. Although Rockwell believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guaranteed, and the terms
and timing of the financing and rights offering may differ materially from
those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
the actions and approvals of securities regulatory authorities, including
the securities regulatory authorities in each province and territory of
Canada, the Toronto Stock Exchange and the Johannesburg Stock Exchange,
the availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such statements
are not guarantees and the actual terms of the financing or rights offering
may differ materially from those outlined in the forward-looking statements.
Canada
3 February 2010
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 03/02/2010 07:49:23 Produced by the JSE SENS Department.
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